ADANI welcomed the Federal Government's decision to approve the expansion of Abbot Point on Tuesday.

The Indian company said the approval was a crucial step in its plans to open the Carmichael Coal Mine in the Galilee Basin, as they would export the coal through Abbot Point.

Federal approvals for the mine and rail line to Abbot Point have already been granted, but it still has many approval processes ahead.

Adani has a 99-year lease from North Queensland Bulk Ports over the port's only terminal, called 'terminal one', which is currently operated and maintained by Glencore.

But it has plans to build another terminal 'T0', which would require further approvals and public consultation.

Now that dredging has been approved, it's believed they will begin lodging these approvals next year.

On their Facebook page yesterday Adani Australia described the decision as "overwhelmingly positive" and key to their plan to deliver "10,000 direct and indirect jobs and $22billion in taxes and royalties to Queensland".

"Adani welcomes today's announcement by Minister Hunt of the approval to expand the port at Abbot Point, subject to strict conditions," the post said.

"The expansion of Abbot Point, the lifeblood of Bowen, is key to Adani's plans."

It also said it supported the decision to dump dredge spoil on land, rather than in the sea as previous plans had included.

But it also noted it was the third time the expansion had been approved since 2010 and foresaw further court challenges by environmental groups.

"For some time, Adani has said what is required for projects such as the port expansion to proceed," Adani said.

"While additional activist-led challenges to detailed, thorough, independent and science-based approvals loom, this approval, coupled with last week's Land Court decision, is overwhelmingly a positive for Adani, and a step in the right direction for jobs in Queensland and exports from our state.

"With remaining state approvals and more certainty in the face of politically-motivated appeals, Adani remains focused on building a long term future with Queensland."

A North Queensland Bulk Ports spokesman also welcomed the expansion approval and described it as a "critical component in unlocking the economic wealth from the Galilee Basin".

"We firmly believe this can be achieved in an environmentally sustainable way," he said.